Crony capitalism is a term describing an economy in which success in business depends on close relationships between business people and government officials. It may be exhibited by favoritism in the distribution of legal permits, government grants, special
tax breaks, or other forms of
state interventionism. Crony capitalism is believed to arise when business
cronyism and related
self-serving behavior by businesses or businesspeople spills over into politics and government, or when
self-serving friendships and family ties between businessmen and the government influence the economy and society to the extent that it corrupts
public-serving economic and political ideals.